AUD/USD Price Forecast – Australian Dollar Continues to Slump

The Australian dollar has fallen during the trading session on Thursday, as we continue to see risk being taken out of the market. Whether or not this continues is a completely different question, but with the jobs number coming out on Friday it is likely that we will have a bit of a pause in the short term. Given enough time, I do believe that this is a market that will find its footing for a bounce, because quite frankly the Australian dollar has been oversold for a while. That being said, if we break down below the bottom of the hammer from a couple of days ago, this is a market that will more than likely be very noisy and reach towards the 0.70 level. That being said, I would prefer to short this market on a bounce. The fact that the Australian dollar is coming unraveled certainly is difficult to chase.

AUD/USD Video 03.12.21

To the upside, if we can take out the 50 day EMA I might be convinced to start buying, but it is obvious that Australia is going to lag. The commodity markets have been a bit of a mess as of late, so it does make a certain amount of sense that the Aussie would pay the price. With this being the case, I think rallies are to be sold into, and quite frankly I would love to see a strong one at this point. In the short term, I think you have to look towards lower pricing, but I think there are easier ways to buy the US dollar at the moment.

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This article was originally posted on FX Empire

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